CEO Compensation And Firm Value

Dah, Abdallah; Abosedra, Salaheddine S.; Matar, Ghida

doi:10.19030/jber.v10i12.7426

Cited by 3 publications

(3 citation statements)

References 12 publications

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“…The bound wealth dismays them to misuse firm resources and encourages them to engage in behaviours that will enhance the firm value (Abedin, 2015). Dah et al, (2012) studied the effect of Chief Executive Officer (CEO) equity-based compensation on firm value. They found that there is a positive relationship between equity based compensation and firm value.…”

Section: Studies On Relationship Between Directors Remuneration and Firm Valuementioning

confidence: 99%

Differences in Directors’ Remuneration and Firm Value of Malaysian Listed Firms

Razali¹,

Manas²,

Lunyai³

et al. 2018

IJARBSS

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Directors' remuneration has attracted considerable interest among scholars and financial analysts as it is seen to be one of the main reason of good firm performance. This paper aimed to examine relationship cash and non-cash director's remuneration towards firm value in Malaysia. Data and materials were collected from Bursa Malaysia website and Eikon Thomson Reuters. Data on director's remuneration, CEO duality and board size were obtained from the annual report whereas other variables such as the firm value, firm size and leverage were collected from Eikon Thomson Reuters database. 602 firms from different industries ranging from 2014 to 2016 period was used as the sample of this study. Regression analysis shows that non-cash directors remuneration has a stronger significant positive relationship with firm value rather than cash remuneration. It proves that the remunerations received by directors can motivate them to perform better for the firm. The analysis also shows that board size and firm age to have a positive and significantly related with the firm value. Nonetheless, the potential limitation of using firm value as the only dependent variable may not provide more meaningful insight of the impact of other components of the performance measure such as excess in value, growth and other performance measure. Hence, future studies may use these variables for further research.

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Section: Studies On Relationship Between Directors Remuneration and Firm Valuementioning

confidence: 99%

Differences in Directors’ Remuneration and Firm Value of Malaysian Listed Firms

Razali¹,

Manas²,

Lunyai³

et al. 2018

IJARBSS

View full text Add to dashboard Cite

show abstract

“…Based on the above, managers have the arduous task of maximizing the company's value for the benefit of shareholders, for which they receive compensation incentives from owners (shareholders). There is a positive relationship between manager compensation and firm value (Dah et al 2012;Basuroy et al 2014;Page 2018). Managers can decide to invest in implementing integrated reporting disclosures, which can create value for shareholders.…”

Section: Introductionmentioning

confidence: 99%

The Role of Manager Compensation and Integrated Reporting in Company Value: Indonesia vs. Singapore

2021

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The disclosure of integrated reporting elements can reduce information asymmetry for investors when valuing a company. This study aimed to empirically evaluate the effect of manager compensation, directly or indirectly, on firm value, through the mediating role of the disclosure of integrated reporting elements. The research sample included manufacturing companies listed on the Indonesia Stock Exchange (IDX) and the Singapore Stock Exchange (SGX). The method of analysis was PLS-SEM, using the WarpPLS 7.0 application. The results showed that compensation significantly affects firm value and the disclosure of integrated reporting elements. Integrated reporting has a significant positive impact on firm value. In addition, the disclosure of integrated reporting can mediate the impact of manager compensation on increasing firm value. This research theoretically supports agency theory, disclosure theory, and signal theory, although it is not fully applicable to each country or region of the sample company. The current research contributes to the understanding of the importance of a company’s integrated reporting disclosure in improving company value among investors. Integrated reporting describes how a company creates value over time. Our results also suggest that regulators should oblige public companies to disclose integrated reporting.

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“…However, they do not find a significant relation with firm performance as measured by ROE or ROA. Dah, Abosedra and Matar (2012) in their examination of the relationship between equity based compensation (EBC) and firm value (as measured by Tobin's Q) document a positive relationship between firm value and EBC, sales-to-asset ratio, CEO level of entrenchment, percentage of independent directors, return on assets and research and development expenditure. Their results also indicate that board size has a negative effect on firm value.…”

Section: Introductionmentioning

confidence: 99%

Is There An Industry Effect in Executive Compensation? Evidence from Aerospace/Defense and Leisure/Hospitality Industry

Amadi

2017

IJBM

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The objective of this study is to compare the executive compensation of two industries that are diametrically opposites in terms of dependence on government: The Aerospace/Defense industry versus Leisure/Hospitality industry. The financial crisis brought the issue of the executive compensation to the attention of government. Congress has often tried to control executive compensation through mandated public disclosures of private contracts, restrictive tax policy, and direct interference with corporate governance. Recent studies show a reduction in donations to nonprofits subsequent to disclosure of high executive compensation. In the same light, since governments are the primary customers of defense industry, we suspect that the issue of high levels of executive compensation will factor into contract negotiations. The study finds a negative relationship, albeit weak, between the Aerospace/Defense industry variable and executive compensation as compared to the Leisure/Hospitality industry.

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CEO Compensation And Firm Value

Cited by 3 publications

References 12 publications

Differences in Directors’ Remuneration and Firm Value of Malaysian Listed Firms

Differences in Directors’ Remuneration and Firm Value of Malaysian Listed Firms

The Role of Manager Compensation and Integrated Reporting in Company Value: Indonesia vs. Singapore

Is There An Industry Effect in Executive Compensation? Evidence from Aerospace/Defense and Leisure/Hospitality Industry

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